Exploring drivers, barriers and enablers for manufacturing reshoring in the Nordic countries

Choosing the right manufacturing locations constitutes a vital part of the manufacturing strategy implementation (Mohiuddin et al., 2019; Uluskan et al., 2017). The manufacturing location decision should be aligned with the business strategy and enable the firm to gain competitive advantages in resources, markets, efficiency or strategic assets (Dunning, 1998). In the past decade, the trend in manufacturing relocation has shifted from globalisation (i.e. offshoring) to deglobalisation (i.e. reshoring) (Boffelli et al., 2020; Grappi et al., 2020; D’Ambrosio and Lavoratori, 2025). Similar to offshoring initiatives, companies embracing reshoring strategies have experienced numerous success stories, along with challenges and failures (Engström et al., 2018a, 2018b; Stentoft et al., 2018; Vissak, 2024). Many firms encountered issues with their offshored operations, leading companies to recognise the importance of choosing the “right shoring” location decision (Joubioux and Vanpoucke, 2016). Behind this reshoring phenomenon lies the pursuit of competitive advantages; manufacturing firms have relocated their operations to locations deemed as advantageous for various reasons (Wiesmann et al., 2017; Boffelli et al., 2021; Üner et al., 2023). In light of this trend, the reshoring of manufacturing has attracted considerable attention in recent years from scholars, practitioners and policymakers (Barbieri et al., 2018; Baraldi et al., 2024; Dachs et al., 2019). As compared to research focusing on offshoring, reshoring research is still in its infancy, but growing fast (Li et al., 2025; Pegoraro et al., 2022).

Reshoring activities have predominantly been observed in the USA (e.g. Tate, 2014; Ellram et al., 2013; Chen et al., 2022; Vanchan et al., 2018), as well as in the UK and Western Europe (e.g. Moradlou et al., 2021; Martínez-Mora and Merino, 2020; Srai and Ané, 2016). Research indicates that reshoring helps industrial practitioners strengthen connections with targeted markets and enhances the flexibility of supply chain operations and management (Liu et al., 2023; Lamperti et al., 2025; Wu, 2025). The existing reshoring literature includes three main research streams: decision-making (e.g. Boffelli et al., 2020; Engström et al., 2018a, 2018b; Wiesmann et al., 2017), implementation (e.g. Boffelli et al., 2018; Lund and Steen, 2020) and outcomes (Uluskan et al., 2017; Stentoft et al., 2018). The decision-making stream garnered the most attention to date, with a focus on understanding factors influencing manufacturing reshoring. Specifically, scholars have examined drivers, i.e. factors that trigger reshoring; barriers, i.e. factors that impede reshoring; and enablers, i.e. factors that facilitate reshoring. It is worth noting that extant research tends to investigate these factors separately, thus lacking comprehensive understanding, which emphasises the need for a more systematic and integrative approach.

The Nordic economy is known for its strong emphasis on innovation, sustainability and global competitiveness, with all Nordic countries consistently ranking among the world’s most advanced and high-income economies. These countries have shared characteristics, such as high GDP per capita, strong industrial capabilities and a commitment to technological advancement. Among the five countries, Sweden has the largest population 10.54 million (World Bank, 2023), and the GDP per capita was US$55.516 (World Bank, 2023), around average among them. Sweden also holds a strong global position, ranking sixth in the IMD World Competitiveness Ranking 2024, second only to Denmark within the region. As such, it serves as a valuable reference point for understanding broader Nordic manufacturing trends. However, with relatively high labour costs, and inflexible labour laws, there was an offshoring trend that encouraged manufacturing firms to establish new capacities in low-cost countries (Mohiuddin et al., 2019). Previous scholars have noticed manufacturing industry within Nordic countries moved parts or all of their production out to low-cost countries from 2010 to 2015 (Johansson and Olhager, 2018a); then, the trend shifted to reshoring. Many companies, such as Ericsson and Sandvik, have now moved some productions back to Sweden because of the digital transformation, high automation level and/or better function synchronisation (Treven, 2022). Especially in recent years, frequent disruptions caused by geopolitical uncertainties and the COVID-19 pandemic have made reshoring a key strategy for manufacturers to enhance resilience and competitiveness (Li et al., 2025; Olhager and Harfeldt-Berg, 2025; D’Ambrosio and Lavoratori, 2025).

So far, limited research has been done in investigating the reshoring drivers, barriers or enablers in the context of the Nordic economy; scholars emphasise the importance of understanding these factors before reshoring becomes a dominant trend in the manufacturing industry (Engström et al., 2018b). Knowledge within this area is rather scattered, thus lacking a systematic view. In addition, a theoretical perspective can enable scholars and managers to develop a profound understanding that is crucial to the decision-making process (Huq et al., 2016). Existing studies have used various theoretical frameworks to understand reshoring, such as transaction cost economics (TCE, Williamson, 1985), the resource-based view (RBV, Barney, 1991) and the eclectic paradigm (Dunning, 1988, 1998). Compared to the other two theories, which focus on cost efficiency and competitive advantage, the eclectic paradigm provides a more holistic framework that integrates ownership, location and internalisation (OLI) advantages. While it considers the interaction of multiple advantages influencing location decisions, the eclectic paradigm remains underutilised in this context. Several scholars argue that this topic requires further investigation (e.g. Engström et al., 2018a, 2018b; Moretto et al., 2020; Pedroletti and Ciabuschi, 2023).

Therefore, this research aims to bridge these research gaps and provide novel insights grounded in theory by leveraging the eclectic paradigm to explore the reshoring drivers, barriers, enablers and interrelations among them, in the Nordic manufacturing context. Two research questions (RQs) were formulated for this purpose:

The Nordic setting is outlined through a literature review, and the empirical data is provided from a case study conducted in one Nordic country, namely, Sweden. By using the eclectic paradigm as a theoretical lens, this research contributes to both academic and practical decision-making. Through a qualitative approach, data was collected from semi-structured interviews with managers from 16 manufacturing firms with reshoring experience within Nordic countries. The subsequent sections provide a detailed review of existing reshoring literature within the Nordic context (Section 2), research methodology (Section 3), findings (Section 4) and discussions (Section 5). Lastly, Section 6 presents the theoretical contributions, policy implications, limitations and suggestions for future research.

A literature review is used to search, select, critically evaluate and synthesise current literature on a particular topic (Cook et al., 1997). Setting clear boundaries is pivotal in conducting a literature review (Ashby et al., 2012). Since around 2009, a growing body of research has concentrated on the phenomenon of reshoring (i.e. the process of bringing manufacturing activities back to the home country) as a response to the limitations of globalisation strategies (Ellram et al., 2013; Tate, 2014). This interest has grown rapidly after the spread of the COVID-19 pandemic, which exposed vulnerabilities in global supply chains and reignited debates around globalisation versus deglobalisation (D’Ambrosio and Lavoratori, 2025; Lamperti et al., 2025). As a result, reshoring has increasingly been examined not only as a strategic location decision or a part of business strategy but also as part of broader economic and political discussions (Pla-Barber et al., 2025; Wu, 2025). This paper set the reshoring background within the Nordic context, which is known for its strong emphasis on innovation, sustainability and global competitiveness. A literature review will benefit in investigating the reshoring of decision-making content within Nordic countries and enable the authors to discover new findings. Thus, the selection criteria for literature include studies being contextualised within Nordic countries; primarily or partially exploring the reshoring decision-making content, such as criteria, factors, drivers, barriers or enablers; and exclusion of literature review studies to ensure original empirical contributions.

In the initial screening step, titles, abstracts and keywords were read to identify papers discussing reshoring to the Nordic countries, 28 relevant papers were identified. After a full paper review, eight papers were excluded, and one paper was added from the search alert. The final sample comprised 21 papers (Table 1), which were included in the full review to reveal drivers, barriers and enablers. Most of the papers within the review sample discussed solely reshoring activities, while nine papers extended the discussion to the manufacturing relocation level, which includes both offshoring and reshoring to extend the knowledge (e.g. Gylling et al., 2015; Heikkilä et al., 2018a, 2018b; Johansson and Olhager, 2018a, 2018b; Olhager and Harfeldt-Berg, 2025). Geographically, 12 studies concentrated on Swedish manufacturing. Two research papers are individually dedicated to Danish, Norwegian and Finnish manufacturing contexts. Furthermore, three papers framed their research within the broader Nordic countries’ context.

Reshoring is a relatively new research trend, with nine papers focused primarily on introducing the trend, context and decision-making tools (e.g. Heikkilä et al., 2018a, 2018b; Johansson and Olhager, 2018a; Leisner and Nielsen, 2019), while rest explored factors that affect reshoring decisions. It is worth noting that scholars investigate factors to various extents. For example, Engström et al. (2018a, 2018b) and Sequeira et al. (2021, 2023) screen the decision-making content to provide a comprehensive view, whereas Fjellström et al. (2023), Gylling et al. (2015) and El-Sahli and Gullstrand (2023) concentrated on just one or two factors. Interestingly, while research widely discussed reshoring drivers, limited studies explore other roles such as barriers and enablers. Several studies suggested that quality issues experienced in the offshoring location, such as product, infrastructure and service quality, are continuously mentioned as strong reshoring drivers (Engström et al., 2018a, 2018b; Lund, and Steen, 2020). Other strong drivers are delivery lead-time, manufacturing costs and production flexibility (Hilletofth et al., 2021; Olhager and Harfeldt-Berg, 2025; Sequeira et al., 2023). Barriers such as ownership-related issues, high labour costs and raw material costs were mentioned (Arlbjørn and Mikkelsen, 2014; Engström et al., 2018a; Heikkilä et al., 2018a). Additionally, enablers, such as reliable supply networks, efficient external communications with business partners and knowledge transfer, have also been identified (Baraldi et al., 2024; Fjellström et al., 2023; Nujen et al., 2019). Due to limited research, conclusions regarding the strong barriers and enablers for firms to come back to Nordic countries have not yet been established. The analysis of drivers, barriers and enablers is presented in Section 2.3, after the introduction of the theoretical lens in Section 2.2.

Reshoring decision factors are not decision factors in isolation. The decision factors are related to something that the company wish to, for example, achieve, avoid or benefit from. Examples of similar approaches include research that has focused on reshoring using operations capabilities (Theyel and Hofmann, 2021). In this paper, we join a stream of previous research using the eclectic paradigm trying to understand reshoring. Our approach is centred on exploring a two-dimensional view of decision factors, where they are both categorised into different types of decision factors and how the decision factors can be understood using the eclectic paradigm.

Evaluation through a theoretical lens is pivotal for constructing robust knowledge (Boffelli et al., 2020; McIvor and Bals, 2021; Moradlou et al., 2021). For this reason, the eclectic paradigm (Dunning, 1998) was used to structure the findings. The initial version was OLI parameters, which proposed to uncover the underlying motives that influence manufacturers’ production decisions. The ownership advantage was further divided into the asset (Oa) and transaction (Ot) advantages of international companies (Dunning, 1983). Three main forms of international manufacturing: market-seeking, resource-seeking and efficiency-seeking were introduced (Dunning, 1988). With the dynamic global market situation, the next version of the eclectic paradigm (Dunning, 1998) highlights the growing importance of intangible assets (i.e. knowledge-intensive assets) in the wealth-creating process, as well as emphasises the changing role of company-specific location-bound assets. The “strategic asset-seeking” was added as one important motive of international manufacturing. Although this theory was developed to explain the expansion of international companies, as Fratocchi et al. (2016) pointed out, it has also been applied to the manufacturer’s global reconfiguration (e.g. offshoring and reshoring). Therefore, the eclectic paradigm has been used for analysing the determinants of international manufacturing and categorises factors into resource-seeking, market-seeking, efficiency-seeking and strategic asset-seeking:

• Resource-seeking category: includes factors essential for accessing and leveraging critical resources, including those exclusive to particular locations, more accessible or of superior quality.

• Market-seeking category: includes factors that exploit market opportunities within specific geographic locations.

• Efficiency-seeking category: includes factors that explore cost-efficient or productivity-enhancing manufacturing.

• Strategic asset-seeking category: includes factors that expedite a company’s access to, creation of or maintenance of strategic or knowledge-related assets.

Additionally, factors that fall into multiple categories are classified as hybrid. In this research, the eclectic paradigm is used as the theoretical lens to understand manufacturing reshoring decision-making content. The decision-making content is constructed from decision factors, and some of the decision factors can be further identified as drivers, barriers or enablers (Figure 1). Surprisingly, only a handful of reshoring studies have used this paradigm to understand reshoring decision-making (Ancarani et al., 2015; Barbieri et al., 2018; Ellram et al., 2013; Moradlou et al., 2021).

To make well-informed decisions, companies need to develop a comprehensive understanding of what and how factors trigger, hinder or facilitate reshoring decisions (Engström et al., 2018a; Presley et al., 2016; Stentoft et al., 2018); these factors are transferable based on specific cases (Engström et al., 2018a, 2018b). Existing reshoring research in the Nordic context (e.g. Heikkilä et al., 2018a; Lund and Steen, 2020; Johansson et al., 2019) has explored drivers, identifying 41 drivers that trigger companies to bring manufacturing back to Nordic countries. By contrast, only a limited amount of research has investigated reshoring barriers (e.g. Engström et al., 2018a, 2018b) and enablers (e.g. Eriksson et al., 2021; Fjellström et al., 2023; Nujen et al., 2019), while understanding barriers and enablers are crucial for effective reshoring implementation. In total, 14 barriers and nine enablers were identified (Table 2).

Within the driver category, 41% of drivers (n = 17) aim to enhance cost-efficiency or productivity, followed by 22% (n = 9) of drivers seek to enhance or protect companies’ strategic assets, 19% (n = 8) market-seeking drivers, 12% (n = 5) resource-seeking drivers and 5% (n = 2) hybrid-seeking drivers.

The decision to reshore manufacturing in the Nordic context is shaped significantly by challenges encountered during offshoring are referred to as “push” drivers (Hilletofth et al., 2021). Notably, within the efficiency-seeking category, “delivery lead time” emerged as a prominent driver. Companies face long lead time due to long distances between factories and markets, which also leads to communication challenges, exacerbated by time differences and language barriers (Engström et al., 2018b; Sequeira et al., 2021, 2023). Additionally, production in foreign countries increased exposure to manufacturing and supply chain risks (Heikkilä et al., 2018a, 2018b; Johansson and Olhager, 2018a, 2018b). The diminishing gap in manufacturing costs between the two countries further motivated companies to reshore (Engström et al., 2018a). Another critical push driver was “product quality”, the negative impact of poor and unstable product quality from offshoring, damaging brand image and reputation. This issue led to the waste of time and resources (Leisner and Nielsen, 2019; Johansson and Olhager, 2018a; Lund and Steen, 2020).

Specific resources and advantages in home countries that encourage companies to reshore are referred to as “pull” drivers (Hilletofth et al., 2021). For instance, advanced knowledge and technology across various industries in the Nordic countries (El-Sahli and Gullstrand, 2023; Lund and Steen, 2020; Johansson et al., 2019), coupled with strong innovation capabilities (Sequeira et al., 2021, 2023), encourage reshoring. Available manufacturing facilities and equipment proved vital production resources, saving significant investments (Lund and Steen, 2020; Stentoft et al., 2016). Moreover, favourable or stable currency transactions (Johansson et al., 2019; Gylling et al., 2015) and proximity to target markets (Lund and Steen, 2020; Johansson et al., 2019) motivated reshoring. Two drivers served as both strategic asset- and efficiency-seeking advantages: high automation in home countries (Arlbjørn and Mikkelsen, 2014; Engström et al., 2018a, 2018b) and proximity to R&D (Johansson et al., 2019; Stentoft et al., 2016), allowing faster production development (Lund and Steen, 2020).

Barriers, on the other hand, often seen as challenges or issues, hinder reshoring efforts. In the current literature discussing reshoring barriers, strategic asset-seeking accounted for the majority (43%, n = 6) of barriers, followed by efficiency-seeking (36%, n = 5). Three barriers fell under resource-seeking (21%), with no barriers identified in market-seeking or hybrid-seeking categories.

From a strategic asset-seeking perspective, factors hindering the reshoring process include challenges related to preserving companies’ or manufacturing facilities’ ownership (Engström et al., 2018b) and the potential loss of competencies developed during the offshoring stage (Engström et al., 2018a). Additionally, issues associated with maintaining consistent knowledge management and transfer across borders pose significant barriers (Engström et al., 2018a; Fjellström et al., 2023). The “Made-in effect” proved to have negative impacts, particularly when customers expected lower prices, putting the company at a disadvantage (Engström et al., 2018b). Furthermore, companies often shaping their responsibility image hinder the reshoring process. Some owners delay reshoring initiatives to prevent unemployment among employees at offshored locations due to a sense of social responsibility (Engström et al., 2018b).

From the efficiency-seeking perspective, regulations concerning investments and trade barriers presented challenges (Heikkilä et al., 2018a; Engström et al., 2018b). Communication difficulties with external partners arose during implementation (Engström et al., 2018b). Negative reactions among domestic employees in the host country, a consequence of cutting offshore production, indicated that “labour market flexibility” hinders reshoring (Engström et al., 2018a). Additionally, IT integration proved to be a challenge, as finding suitable solutions to integrate systems implemented in previous production lines was difficult (Engström et al., 2018b). From a resource-seeking perspective, challenges in finding suitable resources in Nordic countries emerged. High labour costs and the scarcity of labour resources with specific competencies were particularly noted (Engström et al., 2018a).

Enablers, often referred to as prerequisites, are essential factors that ensure the success of reshoring initiatives and facilitate their implementation (Eriksson et al., 2021; Fjellström et al., 2023). We identified four strategic asset-seeking enablers (50% of the total), two resource-seeking and two efficiency-seeking enablers (25% of the total).

Efficiency-seeking enablers focus on ensuring the smooth and efficient execution of reshoring efforts. Effective communication with diverse business partners at each step of the reshoring process is vital to prevent unnecessary issues and challenges (Engström et al., 2018b). Moreover, the establishment of parallel manufacturing capabilities and an increase in production capacity significantly enhance the success of reshoring initiatives (Eriksson et al., 2021; Nujen et al., 2019). As many companies conduct cost-estimation modelling before and during the reshoring process, reasonable manufacturing costs enable companies to continuously process reshoring (Eriksson et al., 2021). From a strategic asset-seeking perspective, intangible resources such as specialised know-how, specific production skills and comprehensive knowledge play a pivotal role. These resources are essential for companies to maintain the same level of product quality and production standards after reshoring (Nujen et al., 2019; Fjellström et al., 2023). Fjellström et al. (2023) emphasised the significance of knowledge transfer in creating competitive advantages during reshoring. Insufficient knowledge transfer may lead to reshoring initiatives falling short of their objectives and encountering challenges.

This research delves into the drivers, barriers and enablers of reshoring in the Nordic manufacturing context. Based on the theoretical framework, we use an inductive research approach inspired by Eriksson and Engström (2021). The research is exploratory in its nature, which is suitable when probing into underdeveloped phenomena (Malhotra and Grover, 1998). Despite some researchers exploring the Nordic reshoring phenomena, there remains a significant gap in understanding the drivers, barriers and enablers simultaneously.

To address this gap, the research methodology used semi-structured interviews for data collection, reporting data captured from case studies. This choice was made due to the method’s capacity for facilitating an in-depth exploration of the subject matter. The case selection involved four steps and encompassed multiple studies, allowing for a larger number of cases than what is typically considered manageable in case-study research (Yin, 2014; Eisenhardt, 1989). Understanding Nordic manufacturing reshoring can start with Sweden’s representation. Sweden’s economic and technological advancements are highly developed and hold a significant position within the Nordic region (Hilmola et al., 2025; Johansson and Olhager, 2018a). Similarities among Nordic economies also provide a basis for analysing the Nordic reshoring phenomenon with Swedish manufacturing as a representative case. Thus, analysing Swedish manufacturing cases provides valuable insights into the broader Nordic manufacturing landscape, serving as an essential starting point for studying manufacturing reshoring within the region. This approach, being a breadth study as supported by Voss et al. (2002), allows a deeper exploration of the complexities in manufacturing reshoring decision-making within the Nordic context. However, this approach limited the research exploring the phenomenon in depth, which is a common limitation of breadth studies (Thomas, 2021). Future studies can expand on this research through single-case study to provide more detailed insights and enhance the understanding of reshoring within the Nordic manufacturing context.

The selection of participants was guided by Four criteria:

1. companies that reshored manufacturing were selected;

2. respondents from within the companies were required to have experiences in manufacturing reshoring projects;

3. the respondent should have experiences in the reshoring decision-making; and

4. the respondents’ respective companies had to either be located in Nordic countries or have a significant focus on the Nordic manufacturing industry.

Through these criteria, the study endeavoured to gather insights from individuals possessing firsthand knowledge and expertise in the area under investigation. This approach was important, as firsthand experience was anticipated to yield invaluable perspectives on the complexity of manufacturing reshoring decision-making.

Respondents were selected through a two-step process, guided by a dual focus. Initially, companies engaged in reshoring initiatives were recruited. Subsequently, within these companies, suitable respondents were identified to ensure diversity within the company. This step involved discussions with senior management at the respective company to ascertain appropriate candidates. This purposive sampling approach, as outlined by Yin (2014), aimed to gain insights from companies with specific experience. A total of 16 experts were selected.

The selected interviewees comprised seven managing directors and nine production managers, thereby ensuring a balanced representation of top-level production decision-makers. It is noteworthy that all the participating firms were headquartered in Sweden and oriented their operations towards the European market. For a comprehensive overview of the sample, fundamental information about each firm is meticulously detailed in Table 3.

The interviews were conducted using a semi-structured approach, which included open-ended questions related to manufacturing reshoring decision drivers, barriers and enablers. Then, both “what” and “how” questions concerned with the reshoring decision-making drivers, barriers and enablers were asked. The interview protocol was designed in English and translated into Swedish. Participants were given the choice of language, and all interviewees opted for Swedish, though some discussions included English terms. Each interview lasted 50–120 min, allowing enough time to collect sufficient data while also allowing for the flexibility to investigate questions at a deeper level. These interviews were conducted in person in 2018 at the participants’ workplace, ensuring a conducive environment for discussions. All conversations were recorded and fully transcribed. The responses were subsequently translated into English by a bilingual author to ensure accuracy.

The interview data analysis used a comprehensive four-level coding scheme (Figure 2). Quotes were analysed by multiple researchers working on larger projects about reshoring. Initially, researchers classified each quote. Quotes related to factors that trigger, impede and facilitate manufacturing reshoring decisions were extracted and constituted the first-order coding, as depicted in Figure 2 under the section titled “Description of drivers, barriers or enablers”. In the second step, one researcher took responsibility for each category of quotes. Inductive categories were created according to the principles of open coding (Ellram, 1996). This step was done in an iterative manner, where previously created categories could be removed, renamed or merged. This coding also ensured that the initial classification of quotes was correct, as it is very difficult to put a, for example, driver quote in a specific group of drivers unless the quote really is a driver. Quotes were then coded into the second-level category of “drivers, barriers or enablers”. Subsequently, in the third level of coding, these drivers, barriers and enablers were further intricately categorised into underlying decision factors, aiming for a nuanced understanding of the intricacies involved. Finally, an additional level of analysis was introduced using the eclectic paradigm, wherein these factors were classified into efficiency-, market-, strategic asset- or resource-seeking dimensions. The coding process (inspired by Magnani and Gioia, 2023) was then done where all the groups were coded based on theory, allowing for a comprehensive and systematic exploration of reshoring decisions from multifaceted aspects. All the coding was done using spreadsheets.

The data analysis process included two phases. In the first phase, the frequency of each factor mentioned by the interviewees was counted to show, how common the factor was triggering, impeding or facilitating the Nordic reshoring activities. In the second phase, in each category, the underlying decision factors and related sought advantages were further analysed. This thorough analysis was conducted by the authors with careful consideration to ensure validity and reliability.

A total of 489 usable quotes were coded and analysed. The majority of unrevealing drivers of reshoring (70% of the total, n = 342). The remaining were evenly split, unrevealing enablers (n = 75) and barriers (n = 72) of reshoring. In total, 65 drivers, 32 barriers and 38 enablers of reshoring decisions were identified in the context of Nordic manufacturing (Table 4). The eclectic paradigm is used to categorise drivers, barriers and enablers.

When discussing the drivers behind reshoring decisions, managers frequently highlighted the efficiency-seeking motives. These included reducing total cost (mentioned in 45 quotes), shortening delivery lead time (mentioned in 33 quotes), enhancing the controllability of production (mentioned in 32 quotes) and improving production flexibility (mentioned in 29 quotes).

Managers often cited drivers that trigger reshoring decisions with a mix of multiple seeking advantages. About 24% of the drivers (n = 16) were identified as hybrid-seeking. For example, some companies reshored to access specific know-how or intellectual properties (IPs) in Nordic countries (ID4 and ID16), which reflects a resource-seeking behaviour. Meanwhile, others reshore aimed to protect maintain or safeguard sensitive IPs (ID1, ID8 and D15), demonstrating an efficiency-seeking strategy. Additionally, some companies reshored to use or further develop their own IPs and production-related know-how (ID3, ID4, ID5, ID6, ID13 and ID16), indicating a strategic asset-seeking approach. Another hybrid-seeking driver is “made-in-effect”, which boosts companies’ brand image. Managers stated that moving back to Sweden strategically improved their brand image through the “Made-in-Sweden” label (ID1, ID4 and ID15). In some cases (ID1, ID3, ID8, ID12 and ID16), managers used this to attract specific customer groups. One manager (ID16) remarked: “For some products you can increase the price if you produce it in Sweden”; another (ID1) added: “Swedish customers want to buy from Swedish companies that buy their inputs in Sweden if the price is not too high”.

Companies displayed a similar interest in exploiting market opportunities and enhancing particular strategic assets, each comprising 14% of the total drivers (n = 9). Managers (ID1, ID7 and ID12) stated bringing manufacturing back allowed them to enhance “logistics performance”. One manager (ID10) explained why shortening logistics handling time, and increasing logistics precision are important for accessing market opportunities: “We had large problems […] long delivery times—6 weeks from China […] we could not have a high delivery precision. We could not satisfy customer requests”. Additionally, managers stated providing in-time and on-site services to customers increase the competitiveness (ID3, ID4, ID8, ID10 and ID12). Managers also highlighted they reshore to create more value-adding activities for customers (ID4, ID5, ID7, ID8 and ID10), to increase the attractiveness to customers. This is particularly due to the significant potential of the after-sale market in Nordic countries. One manager (ID7) stated: “… something that makes us more attractive to our customers because we can serve them in a different way”. Lastly, we found that resource-seeking advantages such as labour and raw materials were not prominent, constituting only 8% of the total drivers for reshoring.

It’s notable that companies’ reshoring efforts are primarily driven by a desire to enhance production efficiency. Interestingly, a significant portion (44%, n = 14) of reported reshoring barriers also falls within the efficiency-seeking category. Companies encountered challenges due to strict layoff regulations in their offshored locations, such as Poland and China. The inflexibility of these labour markets led to production and investments becoming “locked”, leading to substantial exit costs (as highlighted in ID7, ID8, ID9 and ID11). Additionally, high overhead costs (mentioned in seven quotes) and manufacturing costs (mentioned in six quotes) created extra difficulties for production in Sweden. The elevated “total cost” (mentioned in seven quotes) posed a significant obstacle to achieving cost-efficient strategies. Production managers observed that cost estimates made during the reshoring decision-making stage were conservative, resulting in considerably higher actual expenses for factories engaged in reshoring (as indicated by ID1, ID4 and ID15).

Hybrid-seeking barriers accounted for 22% (n = 7) of the total barriers, indicating that the same barrier hinders reshoring cases from various perspectives in different reshoring cases. One common example is the availability of “facilities and equipment” in Sweden. Managers stated that they faced challenges in bringing essential tools and machinery back (ID1, ID8 and ID11). Some managers (ID4 and ID7) also mentioned difficulties in acquiring qualified production tools at reasonable prices, while others struggled to maximise the use of existing machines and equipment (ID1 and ID11). Furthermore, Swedish regulations related to employment (ID8 and ID11) made accessing the labour market challenging, and environmental regulations within the Nordic countries necessitated significant adaptations in production processes (ID2, ID7 and ID8), which posed extra challenges for companies. Specific “know-how and IPs” required for production prolonged the strategic asset-seeking and resource-seeking goals. One manager (ID1) noted delays in reshoring initiatives due to crucial components containing IPs from previous suppliers, while another manager (ID8) stated a lack of specific production knowledge in Sweden.

There are also barriers (16% of the total, n = 5) that impede companies from effectively pursuing their market-seeking strategies. One significant issue was “logistics performance”, as the manager (ID8) explained: “If we move one product [reshoring], our other products might lose priority and that will create delivery issues”. Also, the market opportunities in the Nordic region show less potential compared to previous offshored locations. One manager (ID4) noted: “The market is important. It’s better that manufacturing is located where the market is. … the Nordic market is not huge compared to the Asian market”. Additionally, increased labour costs (mentioned in seven quotes) resulted in higher product prices, thereby limiting companies’ access to additional sales opportunities (ID7, ID8 and ID9).

Some reshoring barriers hinder companies from accessing or leveraging production-related resources and strategic assets in Sweden. Companies found it challenging to hire suitable labour with specific production techniques or skills, such as sewing and tapestry (ID1, ID4 and ID7), indicating labour resources were a disadvantage for Swedish manufacturing. The higher proportion of highly educated personnel in the Nordic countries, compared to developing regions, further complicated the search for qualified personnel. During the reshoring process, companies also experience complex ownership issues related to production components, machinery, factories and knowledge. As one manager (ID8) stated: “Patents, for example. When you decide to move back, and at the last moment, you realize you can’t, because the supplier has patents on a small part”. Another manager (ID1) added: “There can be some [products] that are tied to a specific tool […] Even if we own the tool, it might not be possible to move it […]”. Reshoring may also fail due to a lack of capacity or competencies, as explained by the manager (ID4): “It did not work because we did not have the capacity […] the competency…”.

Enablers facilitate companies in accomplishing the reshoring. Most identified enablers (34% of the total, n = 13) are efficiency-seeking. The feasibility of a reshoring strategy often depends on the existence of spare capacity within domestic factories and inventory (ID2, ID6, ID8, ID9 and ID11). One manager (ID15) explicitly stated that they would not consider any reshoring plans unless there was available capacity. Another crucial efficiency-seeking enabler is “function synchronisation”, which refers to the advantage of having production proximity to various departments, including purchasing, R&D, assembling, warehousing and logistics, which can significantly enhance production efficiency compared to offshoring (ID4, ID5, ID8 and ID9). In addition, reshoring shorter both geographical and cultural distances between the factory, other focal firms and customers. This closer cooperation among organisations and departments facilitates smoother operations and improves overall production performance (ID3, ID4 and ID5).

Similar to drivers and barriers, 26% (n = 10) of enablers facilitated the reshoring from multiple seeking perspectives. For example, the well-structured communication and transportation infrastructure in Sweden is essential for building connections with the target markets (ID8). Furthermore, a reliable and stable electrical and production-related infrastructure serves as a crucial resource-seeking enabler, ensuring uninterrupted production operations (ID5, ID8 and ID11). From an efficiency-seeking perspective, using existing manufacturing infrastructure such as buildings and factories, contribute to cost-efficient production (ID8, ID9 and ID11). Given the challenges of hiring qualified and long-term employees at a relatively lower “labour cost”, maintaining a high level of automation is crucial in the Swedish manufacturing context (ID2, ID4, ID6, ID8, ID9 and ID11). Thus, the “manufacturing automation level” was an important resource for companies to achieve cost-saving objectives (efficiency-seeking enabler) while enhancing production flexibility (strategic asset-seeking enabler).

Strategic asset-seeking enablers comprising 18% of the total (n = 7) facilitate companies to align their reshoring strategies with overall development goals. These include maintaining high-quality production and processes in the home country, having the ability to undergo a “strategy shift” and exhibiting “strategic flexibility”. One manager (ID2) stated: “Through lean [strategy], we improved the business, removed inventories, which we could move to the place where we previously had inventories [Sweden]”, and another (ID7) added: “We have adapted the business [strategy] and removed waste […] which has a positive impact on bringing production back home”.

The rest enablers, each representing 11% (n = 4) of the total, provide resource-seeking and market-seeking advantages. While the availability of skilled labour was previously discussed as a reshoring barrier in the Nordic countries, companies emphasised that having access to it is crucial for a smooth and successful reshoring process (highlighted in 11 quotes). One production manager (ID4) emphasised the importance of retaining qualified labour, stating: “…to keep it (reshoring)? Include everyone’s competencies and experience.” Similarly, another manager (ID9) underscored the role of the production team, stating: “What makes this possible? It is the project team you’ve built […] It’s so important what type of team you’re building”. The availability and accessibility of essential facilities and equipment were also crucial for the smooth implementation of reshoring projects, facilitating the transition and operational efficiency (as mentioned in seven quotes).

Compared to previous research primarily focused on discovering reshoring drivers or motivations (e.g. Johansson et al., 2019; Martínez-Mora and Merino, 2020), this paper provides a more comprehensive analysis. By presenting one factor from three different perspectives: drivers, barriers and enablers, it offers a more holistic understanding of reshoring decision-making. After this thorough research, an interesting alignment has emerged, the factors influencing the Nordic reshoring landscape now mirror those commonly reported within the global manufacturing realm. Such findings shed light on factors that influence companies’ reshoring decisions, and how these factors can be transferred within various contexts. Based on the four types of strategic-seeking advantages, it also encourages a more in-depth exploration and discussion of the interconnectedness and common experiences within various manufacturing environments.

Turning to the RQs, this research first addressed RQ1, which aimed to identify the drivers, barriers and enablers for bringing manufacturing back to Nordic countries. The research revealed key reshoring drivers such as logistics costs and performance, delivery lead time, as well as product and production quality. These findings align with previous research within the Nordic context (e.g. Engström et al., 2018a; Heikkilä et al., 2018a; Hilletofth et al., 2021; Sequeira et al., 2023). Notably, 23 unique drivers were uncovered, with a strong emphasis on efficiency-seeking motivations, focusing on enhancing the controllability of production, supply chain flexibility and visibility, while reducing inventory level, inventory costs and lowering the total cost. Reshoring cases in Denmark proved that reshoring leads to lower labour productivity (Stentoft et al., 2018), in contrast, the analysis shows that the “labour productivity” considerations in the Swedish context have instead encouraged managers to reshore (ID2). Additionally, a noteworthy finding was that the prominence of patriotism, and social responsibility were motivating owners to move back, with half of the participants mentioning these aspects. This sense of national pride played a significant role in decision-making. A manager (ID2) stated: “She [the owner] cares about the society here”. Another manager (ID8) added: “[the reason for reshoring] Almost patriotic - that we keep the activity [in Sweden]”.

The most prevalent barriers to Nordic reshoring include the lack of qualified labour resources with reasonable costs, the availability and affordability of essential facilities and equipment for production. As well as some cost-related factors, such as high labour costs, unpredictable overhead costs and miscalculated total costs. Still, even though companies were driven most by improving productivity-enhance or cost-effective production, most barriers companies reported also impede them in achieving this goal with reshoring. These findings are partially aligned with previous studies (Arlbjørn and Mikkelsen, 2014; Engström et al., 2018a, 2018b; Stentoft et al., 2016), while this research revealed 27 unique barriers. Our findings suggest that contemporary challenges faced by Nordic companies align more closely with those reported globally. However, this does not imply these barriers did not affect previous Nordic companies’ reshoring, it is due to only a few papers having investigated this area in the past. By contrast, our study did not show the importance of “knowledge transfer” in reshoring, which is extensively discussed in both Nujen et al. (2019) and Fjellström et al. (2023).

This paper highlights enablers that increase the success rate of reshoring, identifying key enablers such as manufacturing capacity, labour resources, know-how and IP, infrastructure and automation level. Among these, 30 enablers are newly identified by this research. Notably, the availability of qualified labour was cited as a crucial enabler. Managers emphasised the significance of strong cooperation with staffing agencies and local unions, highlighting the role of collaborative efforts in reshoring success. Manager (ID7) stated: “We have good cooperation with staffing agencies, and we have a good working climate with the local union to find solutions”. Another manager (ID9) added: “Who is it that makes this possible? It is the project team. The team you’ve built”.

Compared to reshoring cases in the global context, we identified factors such as servitisation, customisation, management performance and technology agglomeration, which align with reshoring findings within the USA, the UK and Polish manufacturing context (Theyel et al., 2018; Moradlou et al., 2021, 2022; Ocicka, 2016). While, the barrier “energy cost” that was highlighted within the US and Spanish contexts (Martínez-Mora and Merino, 2020; Pearce, 2014) did not arise in the findings. Information transfer emerged as a barrier for UK reshoring cases: the break in information flow was considered a significant problem, leading to higher reshoring failure rates (Huq et al., 2016). However, this study did not find quotes related to this. Similarly, factors such as “natural disasters”, “natural resources”, “supply chain resilience” and “tax advantages” did not emerge in Swedish reshoring cases, despite they have been found as important drivers or enablers in the US and the UK context (Tate, 2014; Ellram et al., 2013; Srai and Ané, 2016; Moradlou et al., 2021).

The focus now shifts towards RQ2, which focuses on discovering the linkage among these drivers, barriers and enablers based on the eclectic paradigm. Several findings have supported the discussion that drivers, barriers and enablers are transferable based on specific cases (Engström et al., 2018a, 2018b). Among these, factors related to the development of digitalisation and sustainability are presented in multiple perspectives with new roles. Previous research emphasised that increased automation level in the Nordic country is a major reshoring motivation (El-Sahli and Gullstrand, 2023), especially in the Danish manufacturing context (Arlbjørn and Mikkelsen, 2014). While this did not emerge as a driver in the Swedish cases, it was cited as a reshoring barrier and enabler. The decisive impact of automation in addressing the challenges posed by high labour costs. Manager (ID1) stated: “The development of automatisation at the companies is very decisive to where manufacturing can be placed. Our production is no longer that manpower intensive” and “The day we can automize assembly, we’ll move everything home”. When mentioning the timing for moving back, the manager (ID3) added: “If there were loans or very beneficial support from the government to invest in automatisation equipment to take manufacturing home”. The potential for government support in automation investments was also emphasised, indicating a clear link between policy initiatives and reshoring decisions.

Sustainable development is another major trend in the current and future European manufacturing industry (McIvor et al., 2025; Martínez-Mora and Merino, 2020). With the target of zero emissions by 2050, companies are motivated to build more sustainable operations. The current study found that sustainability is increasingly becoming a key driver, this study has revealed it through the specific lens of sustainable supply chains. One manager (ID5) has witnessed sustainability concerns gaining prominence: “The part about the environment is becoming stronger, mainly the big firms have pushed themselves on this”. Sustainability functions as both a strategic asset- and resource-seeking driver, managers reshoring to reduce carbon footprints by building a more local supply chain and choosing suppliers who have the same sustainable business strategy, which is also very attractive to specific customers (ID4, ID6, ID8, ID9, ID11, ID16). However, the study also found that stringent environmental regulations in Nordic countries could act as a barrier, as one manager (ID4) pointed out: “It is not environmentally suitable to produce in Sweden and send to China […] some production will be located in Asia or other continents”. This highlights the necessity for companies to ensure that their sustainable supply chains comply with both production regulations and customer expectations before initiating the reshoring process. Such compliance can significantly increase the likelihood of successful reshoring.

Compared to RBV and TCE, the application of the eclectic paradigm enables scholars to capture the complexities of reshoring decisions and analyses factors with a more holistic approach. A recent reshoring study by McIvor et al. (2025) applied a framework that integrated the natural RBV and TCE to analyse the German automotive industry, for a better integration for investigating sustainability and economic perspectives. The study was interesting, but factors were only discussed from the drivers’ perspective, which missed the opportunities to provide a holistic view. We established the framework that encourages the application of the eclectic paradigm in analysis reshoring related phenomena to scholars in future research. By not only highlighting four types of strategic-seeking categories, but integrating the three perspectives of one decision factor (i.e. driver, barrier and enabler perspective).

This research is one of the few studies integrating strategic advantages of the eclectic paradigm with the three aspects of decision factors in the analysis of manufacturing reshoring. This study offers fresh insights into reshoring within the Nordic manufacturing sector, uncovering key contextual dynamics that influence decision-making. By focusing on the broader patterns and relationships, this research provides a more nuanced and engaging exploration of the reshoring of decision-making, particularly with the eclectic paradigm. Previously overlooked aspects, such as patriotism, customisation strategies and production control, were revealed in this research, thus deepening our understanding of what drives companies to bring operations back home and what unique barriers and enablers shape these efforts.

What sets this study apart is its holistic approach, rather than examining these factors separately, it explores the interconnectedness of drivers, barriers and enablers. Drawing on the eclectic paradigm, the findings highlight the dominance of efficiency-seeking drivers, aligning with earlier studies (e.g. Hilletofth et al., 2021; Sequeira et al., 2023). This integrated perspective enriches the theoretical framework and offers practical insights for companies looking to optimise their reshoring strategies. By applying the eclectic paradigm to the reshoring phenomenon, it again successfully proves the applicability of the paradigm beyond traditional foreign direct investment contexts (Li et al., 2025). The findings integrate the three perspectives of one factor with the four types of strategic-seeking categories. By doing so, it bridges gaps between separate streams of research and provides a clearer understanding of how reshoring decisions unfold in practice. From an academic standpoint, this move encourages the application of the eclectic paradigm, as well as refining it rather than analysis from solely driver perspective.

This study offers practical insights into reshoring decision-making content for managers and industry leaders. This understanding empowers them to make well-informed decisions in the future. Managers are able to use the identified drivers in their strategic decision-making making, and in that way counteract myopic decision-making. In cases where drivers and barriers are conflicting, it is important for managers to consider how they can offset these conflicts. For example, if manufacturing cost is a barrier due to high salaries and labour-intensive production, managers should see, if factors such as labour productivity and manufacturing automation level can act as enablers. Similarly, factors such as R&D and know-how and IP can help to enable a strategy shift. There is also an increasing awareness of the potential risks inherent in supply chain disruptions (Moradlou et al., 2021). Adapting to such risks might justify accepting short-term barriers in favour of long-term stability.

Given the growing interest in strengthening domestic manufacturing among Nordic governments, this study offers valuable insights for policymakers seeking to support reshoring initiatives and enhance national competitiveness. For example, the pivotal role of efficiency-seeking factors in driving manufacturing back, suggesting that governments can focus on these areas to attract more companies. Identifying barriers such as skilled labour shortages and high manufacturing costs emphasises the need for strategic planning from a governmental perspective. Policymakers can collaborate with industries to develop targeted skill development programmes, addressing specific gaps in the local labour market. Furthermore, armed with knowledge about enablers like manufacturing automation and local labour resources, companies and governments can collaborate effectively to enhance reshoring success.

This study uses Swedish manufacturing data while aiming to represent the Nordic manufacturing landscape. Swedish manufacturing has a strong emphasis on innovation, sustainability and global competitiveness. However, an exclusive focus on Sweden might restrict a full depiction of the broader Nordic manufacturing spectrum. The findings may not fully capture variations in other Nordic countries. Several potential research avenues for future research. For example, future research should include diverse Nordic samples for a more comprehensive understanding. Additionally, the eclectic paradigm did not fully cover contingency factors, such as product characteristics, firm-specific attributes and personal experiences, which significantly influence companies’ decision-making. Future studies could also enhance the depth of analysis by exploring alternative theoretical frameworks or conducting multi-theory analyses (Yu and Kim, 2018; Boffelli and Johansson, 2020; McIvor and Bals, 2021), providing a more holistic understanding of reshoring determinants. Additionally, scholars can discover the reshoring decision-making content from other countries or regions, contributing to a global understanding of reshoring dynamics. As one key question arises regarding whether reshoring drivers, barriers, and enablers is becoming globally consistent. If similar patterns emerge across different regions, this may indicate an alignment in reshoring determinants, reducing the need for region-specific studies. This can first stress the concern of the general consistent understanding of reshoring decision factors. Furthermore, even if basic factors remain the same globally, it will be interesting to discover the difference between the significance of each factor in different countries (e.g. which factors have major influences in specific locations and how they differ from country to country). Last, but not least, companies of different sizes and industries may experience varying impacts on reshoring decisions, necessitating evaluations of the drivers, enablers and barriers for reshoring.

This work was supported by the Knowledge Foundation through the project Assure: Initial assessment of manufacturing relocation decisions (Grant 20220013-H-01).

Data availability statement: The participants of this study did not give written consent for their data to be shared publicly, so due to the sensitive nature of the research supporting data is not available.